The corporate treasury function, historically rooted in prudent cash management, is undergoing its greatest transformation in decades. The revolution really began with Michael Saylor at Strategy – which now owns over 3% of the total Bitcoin supply – but Strategy is no longer the only player in the Bitcoin treasury space. Estimates show that corporate treasuries alone now hold over a million BTC, representing assets worth over $120 billion in October 2025.
The thesis of this strategy is rooted in the same thesis that we buy and hold Bitcoin as individuals. In an era of monetary devaluation, the rational entity will seek an asset that surpasses the disastrous effects of devaluation. As money printing continues and markets continue to react (see gold trading above $4,000), it is inevitable that every public company will eventually adopt a Bitcoin cash strategy.
The case for a corporate Bitcoin treasury
The traditional business model risks not only underperforming, but also failing in its fiduciary duty as cash reserves bleed onto the altar of the printing press. Bitcoin, however, offers a limited-supply, unrequited asset with a decade-plus history of compounding value in real terms.
The beauty of the treasury strategy is not just in holding Bitcoin itself; but the ability it gives businesses to take advantage of capital markets. Unlike spot ETFs, companies can issue shares at a premium to net asset value (NAV), raise convertible debt with low or no coupons, and strategically plan market access and purchases of Bitcoin. In practical terms, this means that companies that own Bitcoin can use market structure to increase their Bitcoin holdings per share over time.
The network effect is now self-reinforcing. As each successful Bitcoin treasury company demonstrates its viability, financial market skepticism diminishes and the required financial infrastructure (custody, reporting, convertible debt) matures.
Most compelling is the mNAV value creation paradox: premium trading allows companies to issue shares, buy more Bitcoin, and increase BTC per share (BPS) for existing shareholders. For example, Strategy generated a BTC return of 74.3% in 2024, so long-term holders saw their underlying Bitcoin stake increase by that amount purely through corporate actions – not through market appreciation alone. This is a structural financial innovation for cash management.
But why would a rational investor pay such premiums?
Public companies take on debt at a rate lower than the long-term rate of appreciation of Bitcoin, thus amplifying the increase in BTC per share. From 2020 to 2025, Bitcoin’s compound annual growth rate was 64%. Future projections suggest an environment in which BTC continues to grow on average between 25-35%, so if funding costs are 8%, the gap is retained by shareholders.
If BTC per share grows faster than dilution, shareholders benefit. The resonance flywheel is: mNAV premium → equity raise → more BTC → Bitcoin per share higher → sustained premium → next raise.
Looked at from a different perspective, many jurisdictions and markets have different rules regarding access to Bitcoin for professional and retail investors. In the UK alone, since October 2025, a huge amount of capital (£1.4 trillion) has been locked up in personal pensions and tax-efficient Savings Vehicles (ISAs). For this capital, exposure to Bitcoin through Treasury companies is often the easiest way to generate high alpha returns on a portfolio.
The ups and downs of mNAV
Since the summer 2025 highs, we have seen a huge decline in mNAVs from all BTC treasury companies due to a mix of price stagnation and bad sentiment within the community. Some early adopters fell 90% in a matter of weeks from their highs, challenging investor sentiment and testing company conviction.
As a stock premium to net asset value, mNAV is fundamentally based on a foundation of sentiment and fundamentals.
The success of corporate Bitcoin treasury depends on building investor confidence through transparent reporting and consistent belief in Bitcoin, coupled with fundamentals such as maximizing BTC yield via accretive capital raises, optimizing leverage at market highs, maintaining NAV above 1.2x, and defending it through share buybacks and reduction debt. During a down cycle, each company’s conviction will be tested: those who remain convinced and take a longer-term view will be rewarded. The key solution to maintaining the playbook during a down cycle is to have a profitable operating business: this will allow consistent cash flow to initiate accretive share buybacks if mNAV falls below one. This also allows Bitcoin to be purchased at a discount without diluting shareholders.
Many companies entered the space with very small, unprofitable operating businesses – for example, Metaplanet was a small, bankrupt hotel chain. These companies are turning to the flywheel to revitalize their business. This works very well when times are good, as seen in June this year, where seemingly any company could benefit from a bonus. But when the price of Bitcoin falls, sentiment returns to that of extreme pessimism and investors lose interest in Treasuries, vulnerabilities will be exposed.
The key to building a truly profitable operating business is to maintain consistent revenue and growth, while strategically adding Bitcoin cash. When a company remains both profitable and growing, a market valuation below an mNAV of 1 can only be attributed to irrational sentiment – resulting in the company being incorrectly considered “dead.” By combining a strong core business and stable or growing operational revenue with a growing supply of Bitcoin, businesses can position themselves for resilient long-term value, regardless of market volatility. This will be the next stage of the cash flow model and how the major players emerge from bearish periods.
Potential risks
mNAV compression has significantly speeded up. Artemis Analytics has reported three straight months of sharp declines in mNAV through September 2025, with 25-33% of treasury companies now trading below 1.0x NAV – underwater territory where the flywheel is reversing. The strategy’s mNAV has fallen from 6.0x in 2021 to around 1.21x currently. Again, this reiterates the importance of operational activity to ensure the stability of the treasury strategy, otherwise small, purely fun treasuries can easily end up deep underwater. Although it has an operational business (marginal to broader operations), Strategy is an exception as it is far ahead of any other entity in terms of acquisition size.
Death Spiral mechanic becomes less than 1.0x. Companies with operations below NAV face dilutive capital raises that destroy BPS, triggering shareholder exodus, further decline in NAV and forced liquidations. Last month, Strive acquired Semler Scientific in a $1.34 billion all-stock deal at a 210% premium, combining their Bitcoin treasuries into a 10,900 BTC portfolio. This is the first major M&A consolidation in the industry and validates the thesis that purely distressed Treasuries will be acquired for their Bitcoin holdings at a discount. Expect more consolidation as sub-1.0x mNAV companies become acquisition targets.
A Bitcoin Cash Is Not Optional
The future of Bitcoin treasures is just beginning. As more CFOs adopt Bitcoin as the backbone of corporate reserves, capital markets will reward disciplined, BTC-native management by increasing shareholder value. As adoption accelerates, the alignment between corporate finance and the Bitcoin network will drive unprecedented changes. The winners will not only own Bitcoin, they will build profitable businesses around it, creating sustainable shareholder value and business growth in an increasingly unsustainable system. A Bitcoin cash is not optional – it’s not a nice to have, it’s a must.
